On Wednesday, crude oil lost 2.27% as tensions cooled in Ukraine and U.S. supply data missed investors’ expectations. Because of these circumstances, light crude erased all its gains from Monday's jump and dropped below $101 per barrel.
Who dares enter the long side of the energy complex? It's close to midnight and something's selling oil in the dark. Under the moonlight, you see a drop that almost stops your stop. You try to scream, but the market takes the trade before you make it.
Last week, gold gained more than 4%, leading the rally in commodities. At the same time crude oil extended earlier increases and finally gained more than 2% on Wednesday. Which of these commodities has a better upside potential in the near term?
President Obama is looking for a way out as are oil bulls that were betting on a Middle East disaster. Risk premium came out of the market and for at least in the near term the market may start to focus of more traditional fundamentals.
To have a more complete picture of the current situation in the oil market, we take a look at the charts from different time perspectives. Additionally, we explore how it relates to oil stocks and the oil-gold link.
The Fed’s new focus on inflation or the lack thereof has changed market dynamics. Is good new now good news again? In other words is good economic news bullish or bearish? Well it may depend on the market you are looking at.
Oil bulls were living in a Fed paradise. Somehow up until the Fed meeting the market must have believed that Fed Chairman Ben Bernanke wasn't serious about that taper thing, but they found out that he was serious, very serious.